Like council tax and the TV licence fee, home insurance is one of those items you have to spend money on—even though you might not want to. Home insurance covers you if something serious happens to your home (such as damage, a fire, or a flood) or to your belongings.
There are so many home insurance providers. It can be tough to figure out what different companies offer, how much they charge, and ultimately, choose a policy that’s right for you.
We break down the costs of home insurance, look at what affects home insurance costs, offer suggestions on how you could save money, and answer some Frequently Asked Questions.
Topics
How Much Does Home Insurance Cost?
The table below breaks down the estimated cost of home insurance policies offered by some of the top providers in the UK.
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For our quote, we made the following assumptions:
- The home is worth £300,000, and it would cost £200,000 to rebuild from scratch.
- We want combined building and contents insurance (including accidental damage).
- We don’t want any other policy add-ons such as home emergency cover or bicycle cover unless they’re included as standard.
- We want to make a one-time payment for the cover rather than pay a monthly fee.
| Provider | Annual Price | Building cover | Building cover excess | Contents cover | Contents cover excess | Legal expenses | Home emergency | Higher value items |
| TESCO Bank | £133.22 | Unlimited | £350 | £75,000 | £350 | No | No | No |
| Policy Expert | £162.05 | £500,000 | £350 | £75,000 | £350 | Yes | Yes | No |
| Legal and General | £163.82 | £1,000,000 | £350 | £60,000 | £350 | Yes | Yes | No |
| Swinton | £167.69 | £500,000 | £350 | £50,000 | £350 | No | No | No |
| AA | £169.59 | Unlimited | £350 | £50,000 | £350 | No | No | No |
| RIAS | £180.11 | £1,000,000 | £300 | £50,000 | £300 | No | No | No |
| Halifax | £185.80 | £500,000 | £350 | £75,000 | £350 | No | No | No |
| One Call Insurance | £187.44 | £200,000 | £350 | £50,000 | £350 | Yes | Yes | No |
| HomeInsurer | £190.45 | £200,000 | £350 | £50,000 | £340 | No | No | No |
| Performance Direct | £190.81 | £200,000 | £350 | £50,000 | £350 | Yes | No | No |
| Barclays | £192.02 | £500,000 | £350 | £50,000 | £350 | No | No | No |
| Esure | £193.81 | Unlimited | £350 | £50,000 | £350 | Yes | Yes | No |
| Sheila’s Wheels | £193.81 | Unlimited | £350 | £50,000 | £350 | Yes | Yes | No |
| QuoteMeHappy | £194.16 | Unlimited | £350 | £75,000 | £350 | No | No | No |
| Lloyds Bank | £194.21 | £500,000 | £350 | £75,000 | £350 | No | No | No |
| Sunlife | £194.37 | £200,000 | £300 | £50,000 | £300 | No | No | No |
| HomeNet | £197.70 | £800,000 | £350 | £50,000 | £350 | No | No | No |
| Grove and Dean | £204.31 | £200,000 | £350 | £50,000 | £350 | Yes | Yes | No |
| QuoteLineDirect | £206.24 | £500,000 | £350 | £50,000 | £350 | No | No | No |
| Direct Line | £433.44 | £1,000,000 | £250 | £50,000 | £250 | No | No | Yes |
* The excesses for buildings and contents insurance above reflect the combined total of voluntary and compulsory excesses for those products.
We obtained the figures above from each company’s website in May 2021. Companies may change their prices and product offerings at any time. If you request a quote from an insurer, the quote you receive may differ from the prices outlined above. You should always read through the full terms and conditions before purchasing any insurance product.
Please note that this guide is for your information only. HouseholdQuotes does not recommend any particular insurance product, and the order in which companies appear on this page does not indicate that one product or service is potentially more suitable than another.
We have an affiliate relationship with Quoteline Direct. If you decide to purchase a product from one of our affiliate partners, we may earn a small commission at no additional cost to you.
What Affects the Cost of Home Insurance?
Choice of Cover
Buildings Insurance
Buildings insurance covers the bricks-and-mortar structure of your home against damages from unforeseen events like fires and flooding.
Many mortgage providers require you to take out buildings insurance before they lend to you. That’s because their loan is essentially an investment in your property, and they could lose a lot of money should something happen to your home without the appropriate insurance in place.
Even if you buy your home outright, buildings insurance is still a necessity. If your home is damaged, you could face a large and significant repairs bill upfront that you have to find the cash for rather than meeting those bills by just claiming on your insurance.
Contents Insurance
Whilst your home may be protected by your buildings insurance, your furniture and other personal belongings will not be covered without contents insurance.
If you rent your home, the buildings insurance will be the responsibility of your landlord. However, your contents are your personal responsibility.
Contents insurance gives you the peace of mind of knowing you won’t need to pay out to replace your belongings should disaster strike.
You can also extend your contents insurance to cover loss and theft outside of your home, as well as accidental damages to your phone and other expensive items.
Combined Buildings and Contents Insurance
Buildings insurance alone is perfect for landlords, whereas standalone contents insurance is only really ideal for tenants.
On the other hand, homeowners are responsible for both their property and their belongings, making joint building and contents insurance an absolute necessity.
Combining these policies tends to work out much cheaper than if you were to buy them separately. Make sure you compare the premiums you’ll pay to ensure you’re getting the best deal and ensure you receive adequate cover for both your buildings and your contents.
Students’ Insurance
Student accommodation doesn’t just contain smartphones, computers, laptops, and expensive books for one person but for often four or more people. This makes shared houses particularly attractive targets for burglars.
Before you head to university, it is always a good idea to take out contents insurance to protect your belongings in student accommodation. Even if you’re sharing a house with your friends, you’ll need to each take out your own student insurance policy to be covered.
Some insurers may allow your parents to add you to their own contents insurance policies. However, this will need to be extended to cover areas outside of the family home, quickly becoming expensive.
Tenants’ Insurance
If you rent your home, you can get specialised tenants’ contents insurance to protect your belongings.
Should a fire, flood, or other disaster strike your home, your landlord is responsible for repairing any damages to the property’s structure, like your kitchen or bathroom. However, you will only be able to claim on your own furniture, clothes, and technology if you have your own tenants’ insurance policy in place.
Most insurers will also cover accidental damage to your landlord’s fixtures, fittings, and content in addition to your own. This means that you could make a claim to clean or replace stained curtains or carpets to protect your damage deposit at the end of your tenancy.
Flooding Cover
In the event of a flood, flooding cover compensates you for damage to the structure of your home. You also need to ensure you have suitable contents insurance to cover the cost of replacing any of your belongings that may be affected by water damage.
Home insurers are not allowed to refuse your application simply because you live in a flood risk area.
As long as the government continues to fund flood defences in your region, you will still be entitled to home buildings and contents insurance. However, you may have to pay a higher premium.
Subsidence
Subsidence is when the foundation of your home collapses or starts to sink into the ground.
Early signs of subsidence include sudden cracks in plaster or brickwork, doors and windows starting to stick for no reason, and rippling wallpaper without signs of damp.
Buildings insurance only tends to cover subsidence damage to your home itself. Most policies exclude subsidence that only affects surrounding areas such as your garden walls, patio, or driveway.
Choice of Add-on Cover
Home insurers also give you the option of adding extra so that you can customise your policy to your exact needs.
These additional terms help provide further protection to your property and belongings in the event of loss or damage that would otherwise not have been covered.
Home Emergency Cover
This home insurance add-on gives you access to a 24-hour emergency helpline to get in touch with insurer-approved tradespeople as soon as you need them. Home emergency cover is perfect for boiler breakdowns and burst pipes that need fixing quickly.
These policies usually cover the cost of calling out an expert at any time of day and the labour and material for repairs. Some insurers also pay for alternative accommodation if you can’t stay in your home whilst repairs are taking place.
Many insurance companies now offer home emergency cover as a separate policy. You can find our guide to the best home emergency cover providers here.
Accidental Damage
Whilst some events are entirely out of your hands, such as a leaking pipe or subsidence to your home, other damage may be caused by simple accidents.
Not all home insurance policies automatically cover the latter, and this is why many homeowners choose to add accidental damage protection to their existing policy.
Suppose you spill red wine on the carpet or a football breaks your window by accident. In that case, your accidental damage insurance should cover the cost to either repair or replace the item entirely.
Personal Possessions
Home contents insurance generally covers your personal belongings in the event of loss or damage, including mobile phones, jewellery, laptops, bicycles, and more.
But, chances are, you don’t keep all your belongings at home 24 hours a day, 365 days a year.
Personal possessions cover insures your belongings against loss, theft, and accidental damage when you take them outside your home. That means you can confidently use and wear your belongings every day, knowing they are covered should the worst happen.
Legal Expenses
Good solicitors don’t come cheap, and legal expenses cover is a popular addition to home insurance.
For instance, imagine that you sell your home, but the buyers try to take you to court over some previous work completed at the property. Whether you make a claim against another person or someone involves you in a legal dispute, legal expenses cover may cover your costs up to £50,000 on average.
Downloads Insurance
Your digital belongings need protection too. If you download music, films, games, or books onto your devices, you could be out of pocket if your phone or laptop is lost, damaged, or even stolen.
Whilst your phone or laptop may be covered under your existing policy, the data on it should enjoy the same level of protection. Many home insurers have cottoned on to how many of us experience music, television, and movies nowadays.
If you’re an avid music fan or love to read books on your table, adding downloads insurance to your home insurance could be a sensible choice.
Your Personal Situation and the Characteristics of Your Home
Your home insurance premiums also depend on a wide variety of additional factors related to your personal circumstances and the characteristics of your home. These could include:
Your Personal Situation
When you request a quote for home insurance, you may have to answer some personal questions about your age and gender, as well as whether you’re married or have children at home. The insurance provider might even ask how often you go on holiday!
Insurance companies are in the business of assessing risk. These factors may influence their perception of whether your home or belongings might be damaged, lost, or stolen and, consequently, the premium you’ll have to pay.
Where You Live
Home insurers often use postcodes as a way of determining your premium. Insurance companies use your location to determine the risk that they’ll have to pay out for any repairs or replacements to your home or belongings.
If your home is in an area known for flooding or subsidence, you may pay a higher premium for home insurance. If your street is often targeted by thieves and other criminals, you may have to pay more for contents insurance.
Your premium might also depend on whether you live in a town or in the country. Crime rates tend to be higher in towns and cities, but rural locations may be at greater risk of flooding.
Your Home
When you request a quote for home insurance, most providers will ask you a series of questions about your home. These could include questions about:
- Your home’s size and the number of bedrooms and bathrooms. It costs more to rebuild larger houses, and homes with more bathrooms could be more likely to experience damaging leaks.
- Your home’s age and how it was built. Modern houses and flats are less likely to require expensive repairs in the foreseeable future. That means that insurers could offer you a lower premium. If your property is made of timber, has a flat or thatched roof, or was converted from a different building like a barn, you could pay more for home insurance.
- Your home’s security. Secure homes are safer and cheaper to insure. The top home insurance providers expect you to have locks on your doors and ground-floor windows. The more secure these locks are, the lower your premium could be. Improving your home’s security also increases the chances that your insurance provider will pay out if your home is unfortunately burgled. Before you apply for home insurance, you may want to consider upgrading your door and window locks or adding a home security system.
- Whether you live in a listed building. Listed buildings tend to be much older and more expensive to repair because you need specialist tradespeople. Councils also usually restrict how homeowners can repair or replace damaged parts of their home. This can affect the cost of your home insurance.
The Value of Your Belongings
Contents insurance covers the cost of replacing all of the important items in your home, so you need a policy that covers their total collective value. The more expensive your belongings, the more you can expect to pay to insure them.
It is important to remember that your contents aren’t just things like your telly or your clothes. In fact, contents insurance should include all the fixtures and fittings in your home—everything from your lampshades down your carpets.
Your Claims History
If you made a claim on your home insurance in the past (either with your current provider or a different one), this can affect the premium you pay. Even if you claimed for a good reason, it could still affect your ‘risk profile’, and an insurer may think you’re more likely to make a claim in the future.
This is why insurance providers often advertise a “no claims discount” for customers who haven’t made any claims in a certain number of years. Generally, you may pay less for home insurance if you have no claims history.
How Can I Save Money on Home Insurance?
The best way to save money on home insurance is to shop around before you buy. We’ve tried to make the process of finding the right home insurance simpler by looking at how much some insurers may charge, and some of the features of their home insurance products.
Still, the only way to truly find the right insurance for you, your home, and your belongings is to visit different websites and complete the quote forms online or by phone.
Don’t rush to accept the first quote you receive. Insurance companies can save the quote for you and give you a reference number if you decide to accept their quote later on.
When you get a quote, ask if the company offers a no-claims discount or whether you can save money by paying your premiums annually instead of monthly.
Once you’ve found a suitable insurance provider, don’t forget to compare quotes before you renew! Many insurers increase premiums after the first year—even if you haven’t made a claim.
Always check whether your policy automatically renews, and give yourself plenty of time to compare before deciding whether to renew or change providers.
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- Compare insurers - Get quotes from their panel of over 100 insurers
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- Quick quotes - Get a quote online in minutes
- Compare insurers - Get quotes from their panel of over 100 insurers
- Quality service - Highly rated by our customer on Feefo, the independent review platform
- Independent - Nt tied to an insurer, so will look for the best deal for you
Final Checklist
- Review our guide to the top home insurance companies and note down a few providers that spark your interest.
- Visit their websites to learn more about their cover options and compare quotes.
- Before purchasing any home insurance, make sure you understand what your policy includes and excludes and how much excess you’ll have to pay if you claim. Many insurance companies publish their policy documents online, and it’s a good idea to review these before committing.
- Once you’ve purchased the insurance, keep a copy of your policy and policy documents in a safe place.
- Check whether your policy automatically renews, and take the time to compare quotes before choosing to stay on or buying cover elsewhere.
Further Reading
To learn more about home insurance, visit:
Frequently Asked Questions
What’s the cheapest home insurance?
Different insurance companies may evaluate risk differently, which is why it’s so important to compare quotes before purchasing.
How much home insurance cover do I need?
For buildings insurance, you only need to insure the amount it costs to rebuild, not its market value. You can find the rebuilding cost in the home survey report you received before purchasing your house or flat.
You also need to work out how much your contents are worth collectively. Together, these figures will help you work out just how much home insurance you need to adequately cover your home.
How do I calculate the value of my home or contents?
For your belongings, you can use a different calculator like this one from Confused.com to work out how much your possessions are worth.
These two figures should help you choose the right level of cover for your needs.
Can I cancel my home insurance policy?
You can still cancel your policy after the cooling-off period. If you haven’t made any claims, many insurers offer a pro-rata refund for the remainder of your policy term minus some administrative charges and any discounts you received when you took out the policy.
Is it possible to transfer my home insurance to another provider?
However, you’ll need to speak to your insurer beforehand to make sure this is possible. Keep in mind that you may be charged for the transfer. This is because your premium is based on your postcode and the type of property you live in.
You should give your insurance provider your new address and property details as soon as possible, so they can ensure you still have the right level of cover and recalculate your premiums.
- Quick quotes - Get a quote online in minutes
- Compare insurers - Get quotes from their panel of over 100 insurers
- Quality service - Highly...Show More
- Quick quotes - Get a quote online in minutes
- Compare insurers - Get quotes from their panel of over 100 insurers
- Quality service - Highly rated by our customer on Feefo, the independent review platform
- Independent - Nt tied to an insurer, so will look for the best deal for you
Can I pay my home insurance premiums monthly?
Whilst paying monthly means you don’t have to pay a lump sum in the short term, insurance companies charge interest, so you might pay more over the life of your policy.
Will my home insurance automatically renew?
Rarely, some insurance companies may charge a renewal fee, so be sure to ask before you buy.
When your policy is close to expiring, the company will send you a letter with the details of your policy, any changes to your cover, and the premium for next year.
They should send you the letter well in advance, so you have time to decide whether you want to renew or cancel. You’ll also benefit from a new 14-day cooling-off period after your policy renews in case you decide to cancel within 2 weeks.
Does home insurance cover mobile phones?
Many home insurers now automatically include mobile phones as part of their cover. That means your mobile is covered if it’s lost or stolen in your home (such as during a burglary) or damaged because of a flood or fire.
However, you may need to upgrade your contents insurance to cover other everyday risks such as accidental damage or protection outside of the home.
Are home insurance claims taxable?
However, this only applies to your personal residence—not to investment properties.
Do home insurance companies check previous claims?
Insurers decide your premium based on the perceived risk of insuring you. If they think you’re more likely to make a claim and that you’ll cost them money, they’ll likely charge you more for your coverage.
Can my home insurance provider cancel my cover?
- making too many claims above the average amount;
- having a roof over 30 old that could be easily damaged; and,
- having certain breeds of pets.
Make sure you understand your policy terms and maintain your home to mitigate any potential problems. It’s also a good idea to avoid using your home insurance for maintenance issues, as many small claims will drive up your premiums.
Can a home insurance company deny me cover?
If your home has existing damage, too many perceived hazards, or you don’t meet other criteria, the insurance company can choose not to cover you.
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